deborah m. franco - south jersey industries€¦ · deborah m. franco deborah m. franco enclosures...

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520 Green Lane Union, NJ 07083 T: (908) 662-8448 F: (908 662-8496 [email protected] Deborah M. Franco, Esq. Director, Regulatory Affairs Counsel May 15, 2020 Electronic Submission Aida Camacho-Welch Secretary of the Board New Jersey Board of Public Utilities 44 South Clinton Avenue, 9 th Floor Trenton, NJ 08625 Re: In the Matter of the Petition of South Jersey Gas Company For Approval of Increased Base Tariff Rates and Charges for Gas Service, Changes to Depreciation Rates and Other Tariff Revisions, BPU Docket No. GR20030243 Dear Secretary Camacho-Welch, Enclosed please find South Jersey Gas Company’s 9+3 Update and supporting documents in the above-referenced matter. Due to the COVID-19 pandemic, and in accordance with the New Jersey Board of Public Utilities (“BPU”) March 19, 2020 Order issued in BPU Docket No. EO20030254, hard copies are not being provided at this time, but can be provided at a later time, as needed. Please contact me at (908) 662-8448 if you have any questions. Respectfully submitted, Deborah M. Franco Deborah M. Franco Enclosures cc: Service List (w/Enclosure)

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Page 1: Deborah M. Franco - South Jersey Industries€¦ · Deborah M. Franco Deborah M. Franco Enclosures cc: Service List (w/Enclosure) STATE OF NEW JERSEY BOARD OF PUBLIC UTILITIES IN

520 Green Lane Union, NJ 07083

T: (908) 662-8448 F: (908 662-8496

[email protected] Deborah M. Franco, Esq. Director, Regulatory Affairs Counsel

May 15, 2020 Electronic Submission Aida Camacho-Welch Secretary of the Board New Jersey Board of Public Utilities 44 South Clinton Avenue, 9th Floor Trenton, NJ 08625

Re: In the Matter of the Petition of South Jersey Gas Company For Approval of Increased Base Tariff Rates and Charges for Gas Service, Changes to Depreciation Rates and Other Tariff Revisions, BPU Docket No. GR20030243

Dear Secretary Camacho-Welch,

Enclosed please find South Jersey Gas Company’s 9+3 Update and supporting documents in the above-referenced matter. Due to the COVID-19 pandemic, and in accordance with the New Jersey Board of Public Utilities (“BPU”) March 19, 2020 Order issued in BPU Docket No. EO20030254, hard copies are not being provided at this time, but can be provided at a later time, as needed.

Please contact me at (908) 662-8448 if you have any questions.

Respectfully submitted, Deborah M. Franco Deborah M. Franco Enclosures cc: Service List (w/Enclosure)

Page 2: Deborah M. Franco - South Jersey Industries€¦ · Deborah M. Franco Deborah M. Franco Enclosures cc: Service List (w/Enclosure) STATE OF NEW JERSEY BOARD OF PUBLIC UTILITIES IN

STATE OF NEW JERSEY BOARD OF PUBLIC UTILITIES

IN THE MATTER OF THE PETITION OF SOUTH JERSEY GAS COMPANY FOR APPROVAL OF INCREASED BASE TARIFF RATES AND CHARGES FOR GAS SERVICE, CHANGES TO DEPRECIATION RATES AND OTHER TARIFF REVISIONS

: : : : :

DOCKET NO. GR20030243

9&3 Update

May 2020

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9 & 3 UPDATE

Schedules of

S.M. Graham

Page 4: Deborah M. Franco - South Jersey Industries€¦ · Deborah M. Franco Deborah M. Franco Enclosures cc: Service List (w/Enclosure) STATE OF NEW JERSEY BOARD OF PUBLIC UTILITIES IN

Schedule SMG-19&3

SOUTH JERSEY GAS COMPANYREVENUE REQUIREMENT

Line No. REFERENCE

1 Adjusted Rate base 2,215,934,659 SMG-2

2 Rate of Return 7.38%

3 Required Operating Income 163,564,026

4 Adjusted Net Operating Income 105,066,820 SMG-3

5 Income Deficiency 58,497,206

6 Revenue Factor 1.418291 SMG-5

7 Revenue Requirement $82,966,082

8 Revenue Requirement Rolled-In From:9 Accelerated Infrastructure Replacement Program (AIRP II) ($6,097,776)

10 Storm Hardening & Reliability Program (SHARP II) ($3,539,736)11 Conservation Incentive Program (CIP) $2,412,092 DPY-3

12 Requested Additional Operating Revenue $75,740,663

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Schedule SMG-29&3

ACTUAL PROJECTED ADJUSTED REFERENCE TO Line RATE BASE ADJUSTMENT RATE BASE PRO FORMA RATE BASE RATEMAKINGNo. March-20 April 20 - June 20 June-20 ADJUSTMENT December-20 ADJUSTMENTS

1 Utility Plant In Service $3,010,903,288 94,921,075$ $3,105,824,363 175,358,718$ $3,281,183,080 BWS-12 Accumulated Depreciation & Amortization (555,346,159) (13,860,239) ($569,206,398) (31,192,328) ($600,398,726) BJO-53 Non-Legal ARO (14,962,637) 182,401 ($14,780,235) 227,804 ($14,552,432) BJO-645 Net Utility Plant 2,440,594,493 81,243,237 2,521,837,729 144,394,194 2,666,231,923678 Materials & Supplies (1) 627,435 0 627,435 0 $627,435 SMG-299 Gas Inventory: (1)

10 Natural Gas Inventory 9,829,536 36,717 9,866,253 (1,683,361) $8,182,892 SMG-2911 LNG Inventory 2,939,585 179,691 3,119,276 474,592 $3,593,868 SMG-2912 Cash Working Capital 0 0 76,747,726 9,983,445 $86,731,171 SMG-28.1,28.213 Customer Deposits (1) (6,972,505) 20,005 (6,952,500) (25,806) ($6,978,306) SMG-2614 Customer Advances (1) (1,439,284) 0 (1,439,284) 0 ($1,439,284)15 Deferred Income Taxes:16 Excess Protected ADIT (467,802) (6,088) (473,891) 36,529 (437,361)17 Excess ADIT (2017 TCJA) (149,470,704) 0 (149,470,704) 3,214,439 (146,256,265) ADF-319 Federal Income Tax (280,641,044) (1,588,724) (282,229,768) (30,821,246) (313,051,014) BJO-720 NJ CBT (70,777,636) (1,911,426) (72,689,062) (8,581,338) ($81,270,400) BJO-821 Consolidated Tax Adjustment 0 0 0 0 $0 ADF-22223 Total Rate Base $1,944,222,074 $77,973,411 $2,098,943,210 $116,991,448 $2,215,934,659

(1) Represents Thirteen Month Averages of Account Balances

SOUTH JERSEY GAS COMPANYSTATEMENT OF RATE BASE

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Schedule SMG-39&3

ADJUSTED PRO FORMA9 MONTHS 3 MONTHS TEST YEAR TEST YEAR POST TEST YEARACTUAL PROJECTED ENDED PRO FORMA ENDED REVENUE ENDED

Line No. DATA DATA 6/30/2020 ADJUSTMENTS 6/30/2020 DEFICIENCY 6/30/2020

1 Operating Revenues 475,454,800$ 102,369,600$ 577,824,400$ (1,057,546)$ 576,766,854$ $82,966,082 659,732,935$ 23 Operating Expenses:45 Purchased Gas 170,344,000$ 35,956,600$ 206,300,600$ 1,088,932$ 207,389,532$ -$ 207,389,532$ 67 Operation & Maintenance Exps. 109,413,102$ 38,481,150$ 147,894,252$ 8,128,630$ 156,022,881$ 1,368,691$ 157,391,573$ 89 Depreciation Expense 49,734,100$ 16,915,300$ 66,649,400$ 13,697,153$ 80,346,553$ -$ 80,346,553$ 1011 Taxes Other Than Income Taxes 3,853,200$ 1,115,600$ 4,968,800$ (47,956)$ 4,920,844$ 226,955$ 5,147,799$ 1213 Excess Deferred Tax Amortization -$ -$ -$ (2,223,581)$ (2,223,581)$ -$ (2,223,581)$ 1415 Federal Income Taxes & NJ CBT 32,155,524$ (59,123)$ 32,096,402$ (7,016,398)$ 25,080,003$ 22,873,229$ 47,953,233$ 1617 Total Operating Expenses 365,499,926$ 92,409,527$ 457,909,453$ 13,626,780$ 471,536,234$ 24,468,876$ 496,005,110$ 1819 Net Operating Income 109,954,874$ 9,960,073$ 119,914,947$ (14,684,327)$ 105,230,620$ 58,497,206$ 163,727,826$ 2021 Ratemaking Adjustment:22 Interest on Customer Deposits $113,436 $40,576 154,012$ 9,788$ 163,800$ -$ 163,800$ 232425 Adjusted Net Operating Income 109,841,438$ 9,919,497$ 119,760,934$ (14,694,114)$ 105,066,820$ 58,497,206$ 163,564,026$ 2627 Total Rate Base 2,098,943,210$ 2,215,934,659$ 2,215,934,659$ 2829 Return on Rate Base 5.71% 4.74% 7.38%3031 Adjusted Net Income 83,101,931$ 66,364,507$ 124,861,713$ 3233 Return on Equity 7.31% 5.53% 10.40%

SOUTH JERSEY GAS COMPANY OPERATING INCOME STATEMENT

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Schedule SMG-49&3

Pro Forma Adjustments1. Operating Revenues (SMG-6)

(a) EET Rider Adjustment (SMG-7) (10,199,800)$ (b) SHARP/AIRP Revenue Adjustment (SMG-8) 752,613$ (c) Interruptible, Off-System Sales & SIM Adjustment (SMG-9) (4,425,667)$ (d) Customer Annualization (SMG-10) 3,491,172$ (e) Sales from Post Test Year Plant Additions (SMG-12) 5,623,346$ (f) Contract Changes (SMG-14) 27,366$ (g) Miscellaneous Services Charges (SMG-15) 627,183$ (h) Rental Income Adjustment (BJO-10) 634,148$ (i) CIP Revenue Adjustment (DPY-3) 2,412,092$

($1,057,546)2. Purchased Gas Costs (SMG-6) (a) Adjust Purchased Gas Cost to Annualized Post Test Year (SMG-6) 1,088,932$

1,088,932 3. Operation and Maintenance Expenses (SMG-16) (a) Remove EET Rider Expense (SMG-7) (2,708,000)$ (b) Remove EET Rider Amortization (SMG-7) (2,047,000)$ (c) Payroll Expense Adjustment (SMG-17) 1,114,490$ (d) Benefits Expense Adjustment (SMG-18) 764,287$ (e) Allocated Service Company Expense Adjustment (SMG-19) 2,149,876$ (f) Mark Out Expense Adjustment (SMG-20) 174,968$ (g) Compression Project Expense Adjustment (SMG-21) 2,280,000$ (h) Amortization of Rate Case Expenses (SMG-22) 253,000$ (i) Pipeline Integrity Management (SMG-23) 1,738,183$ (j) Remove 2017 Rate Case Amortizations (SMG-24) (1,853,102)$ (k) Facility Expense Adjustment (BJO-10) 424,249$ (l) Pension/OPEB Amortization (BJO-11) 1,161,982$ (m) Pension/OPEB Expense (BJO-11) 49,503$ (n) Amortization of Deferred ERIP Expenses (BJO-12) 1,691,067$ (o) Amortization of B. L. England Expenses (BJO-13) 1,007,961$ (p) O&M Inflation Adjustment (SMG-25) 1,927,165$

8,128,630

4. Depreciation Expense (BJO-5) (a) Annualize Test Year Depreciation Expense as of 6/30/2020 with proposed depreciation rates 4,075,657$ (b) Annualize Post Test Year Depreciation Expense as of 12/31/2020 with proposed depreciation expense 6,735,183$ (c) Adjustment due to Increase in Proposed Annual Net Negative Salvage Allowance 2,612,316$ (d) Adjustment due to Decrease in Non-Legal Asset Retirement Obligation (ARO) Credit 273,997$

13,697,153 5. Taxes Other Than Income (a) Payroll Tax Adjustment (SMG-17) 100,304$ (b) Adjustment for PUA (SMG-27.1 & SMG-27.2) (148,260)$

(47,956) 6. Interest (SMG-26) (a) Adjust Interest on Customer Deposits by Average Yield on 6 month Treasury Bill 9,788$

9,788 7. Taxes - Income - Current (a) Interest Synchronization (BJO-9) (288,525)$ (b) Income Tax effect of adjustments 1 - 6 (6,727,874)$

(7,016,398)

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

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Schedule SMG-59&3

LineNo.

1 Additional Required Revenue Percentage 100.000%23 Percentage Adjustment for Uncollectibles 1.649700%4 BPU Assessments 0.220453%5 Rate Counsel Assessments 0.053099%67 Percentage of Income Before State Income Tax 98.07675%89 State Income Tax Percentage 9% 8.8269%1011 Percentage of Income Before Federal Income Tax 89.2498%1213 Federal Income Tax Percentage 21% 18.742%1415 Revenue Expansion Factor - Percent 70.5074%1617 Revenue Expansion Factor - Whole Number 1.418291

SOUTH JERSEY GAS COMPANYDERIVATION OF REVENUE EXPANSION FACTOR

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Schedule SMG-69&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

SUMMARY OF REVENUE & COST OF GAS ADJUSTMENTS

Line Therm Revenue Cost of GasNo. Adjustments Adjustments Adjustments Reference

1 EET Rider Adjustment N/A (10,199,800)$ N/A SMG-7

2 SHARP II/AIRP II Revenue Adjustment N/A 752,613$ N/A SMG-8

3 Interruptible, Off-System Sales & SIM Adjustment N/A (4,425,667)$ (2,677,687)$ SMG-9

4 Customer Annualization 225,184 3,491,172$ 1,470,491$ SMG-10

5 Sales from Post Test Year Plant Additions 409,982 5,623,346$ 2,296,129$ SMG-12

6 Contract Changes 0 27,366$ -$ SMG-14

7 Miscellaneous Service Charges N/A 627,183$ N/A SMG-15

8 Rental Income Adjustment N/A 634,148$ N/A BJO-10

9 CIP Revenue Adjustment 2,590,811 $2,412,092 N/A DPY-3

10 Total Firm Revenue and Cost of Gas Adjustments 3,225,977 (1,057,546)$ 1,088,932$

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Schedule SMG-79&3

2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020Line Actual Actual Actual Actual Actual Actual Actual Actual Actual Projected Projected ProjectedNo. July August September October November December January February March April May June TOTAL

1 EET Revenue Adjustment 586,500$ 823,200$ 741,600$ 977,100$ 730,600$ 870,100$ 839,400$ 828,300$ 914,600$ 918,200$ 985,500$ 984,700$ 10,199,800$

2 EET O&M Expenses Adjustment 119,200$ 264,200$ 262,300$ 291,300$ 122,300$ 225,000$ 194,600$ 161,900$ 248,800$ 225,800$ 294,500$ 298,100$ 2,708,000$

3 EET Amortization Adjustment 112,200$ 123,500$ 141,700$ 152,200$ 161,200$ 183,100$ 190,000$ 191,100$ 192,800$ 197,600$ 200,100$ 201,500$ 2,047,000$

SOUTH JERSEY GAS COMPANY

EET RIDER ADJUSTMENTPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

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Schedule SMG-89&3

2019 2019 2019Line Actual Actual ActualNo. July August September TOTAL

1 SHARP II Roll In Revenue 75,058$ 77,927$ 77,165$ 230,150$

2 AIRP II Roll In Revenue 170,389$ 176,903$ 175,172$ 522,464$

3 Total Revenue Adjustment 245,447$ 254,831$ 252,336$ 752,613$

PRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOMESHARP II & AIRP II REVENUE ADJUSTMENT

SOUTH JERSEY GAS COMPANY

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Schedule SMG-99&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

TEST YEAR INTERRUPTIBLE AND OFF-SYSTEM SALES, AND STORAGE INCENTIVE MECHANISM

Test Year Pro FormaLine Ending Adjustment RevenueNo. 6/30/2020 (Company Margin Share) in Test Year

1 Revenue2 Interruptible $323,820 ($48,573) $275,2473 Off-System Sales $53,543,775 ($4,377,094) $49,166,6814 Total Revenues $53,867,595 ($4,425,667) $49,441,92856 Cost of Gas7 Interruptible 4,480 (672) 3,8088 Off-System Sales 27,018,095 (2,257,723) 24,760,3729 SIM 0 (419,292) (419,292)

10 Total Cost of Gas $27,022,575 ($2,677,687) $24,344,88811

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Schedule SMG-109&3

Line AnnualizedNo.

Dt Revenue Cost of Gas1 Residential (RSG)

2 Heating Sales Service (480.11) 181,286 $2,665,247 $1,035,062

3 Non-Heating Sales Service (480.12) 1,726 $25,958 $7,999

4 Sub-Total 183,012 $2,691,205 $1,043,061

5 General Service (GSG)

6 Commercial Non-Heating Sales Service (481.21) (2,387) ($32,731) ($14,259)

7 Commercial Heating Sales Service (481.31) 86,794 $1,140,349 $492,263

8 Industrial Heating Sales Service (481.32) 1,210 $14,228 $6,805

9 Transportation Commercial Non-Heating (489.821) (368) ($2,753) ($398)

10 Transportation Commercial Heating (489.831) (43,288) ($320,611) ($57,237)

11 Transportation Industrial Heating (489.832) 210 $1,485 $256

12 Sub-Total 42,172 $799,967 $427,430

13 Total Adjustment 225,184 $3,491,172 $1,470,491

PRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOMESOUTH JERSEY GAS COMPANY

CUSTOMER ANNUALIZATION

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Schedule SMG-119&3

Actual Actual Actual Actual Actual Actual Actual Actual Actual Projected Projected ProjectedJul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

480.11 RES SERV SALES - HSE HTG RSG Heat 340,098 340,065 340,388 341,175 342,586 344,046 345,235 346,160 347,256 347,515 347,667 347,671

480.12 RES SERV SALES W/O HSE HTG RSG Non-Heat 10,897 10,894 10,883 10,842 10,841 10,835 10,818 10,800 10,790 10,830 10,864 10,904

490.21 RTS HSE HTG RSG Trans Heat 15,504 15,436 15,389 15,263 15,228 15,177 15,092 14,921 14,748 14,748 14,748 14,748

490.22 RTS W/O HSE HTG RSG Trans Non-Heat 667 659 655 647 639 631 627 618 619 619 619 619

481.31 BLDG HTG & COOL COMMERCIAL Commercial Heat 18,229 18,141 18,140 18,252 18,535 18,710 18,836 18,901 18,962 19,009 19,050 19,093

481.21 GEN SERV SALES COMMERCIAL Commercial Non-Heat 1,488 1,489 1,487 1,479 1,462 1,443 1,440 1,438 1,444 1,444 1,444 1,444

481.32 BLDG HTG & COOL INDUSTRIAL Industrial Heat 264 261 258 258 261 264 262 264 264 264 264 264

481.22 GEN SERV SALES INDUSTRIAL Industrial Non-Heat 8 8 8 8 7 7 7 7 7 7 7 7

489.831 COMM BLDG HTG & COOL Commercial Trans Heat 5,214 5,199 5,197 5,212 5,212 5,254 5,244 5,246 5,243 5,240 5,209 5,168

489.821 COMM GEN SERV Commercial Trans Non-Heat 342 338 339 335 330 337 340 338 336 336 336 336

489.832 IND BLDG HTG & COOL Industrial Trans Heat 65 65 65 68 66 66 66 65 66 66 66 66

489.822 IND GEN SERV Industrial Trans Non-Heat 4 4 4 1 2 2 2 2 2 2 2 2

481.63 GSG-LV COMMERCIAL HEAT Commercial LV Heat 42 42 41 40 40 39 39 40 40 40 40 40

481.61 GSG-LV COMMERCIAL Commercial LV Non-Heat 2 2 2 2 2 2 2 2 2 2 2 2

481.64 GSG-LV INDUSTRIAL HEAT Industrial LV Heat - - - - - - - - - - - -

481.62 GSG-LV INDUSTRIAL Industrial LV Non-Heat 1 1 1 1 1 1 1 1 1 1 1 1

489.867 GSG-LV FT COMMERCIAL HEAT Comm LV Trans Heat 114 115 115 116 116 117 117 117 117 117 117 117

489.865 GSG-LV FT COMMERCIAL Comm LV Trans Non-Heat - - - - - - - - - - - -

489.868 GSG-LV FT INDUSTRIAL HEAT Ind LV Trans Heat 10 10 10 10 10 10 10 10 10 10 10 10

489.866 GSG-LV FT INDUSTRIAL Ind LV Trans Non-Heat 1 1 1 1 1 1 1 1 1 1 1 1

SOUTH JERSEY GAS COMPANYCUSTOMER COUNTSJULY 2019 - JUNE 2020

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Schedule SMG-129&3

LineNo. Dt Revenue Cost of Gas

1 Residential Heat (480.11) 289,951.9 $4,115,236 $1,634,175

2 Residential Non-Heat (480.12) 5,297.6 $85,347 $24,576

3 Gen. Serv. Comm Heat (481.31) 114,732.2 $1,422,764 $637,378

4 Pro-Forma Adjustment 409,981.8 $5,623,346 $2,296,129

PRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOMESOUTH JERSEY GAS COMPANY

SALES FROM POST TEST YEAR UTILITY PLANT ADDITIONS

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Schedule SMG-139&3

SOUTH JERSEY GAS COMPANYREVENUE PRODUCING UTILITY PLANT

JULY 2020 - DECEMBER 2020

Projected Post Test Year Gross Customer Additions

2020 2020 2020 2020 2020 2020 6 Months Jul Aug Sep Oct Nov Dec Total Dts Per Customer Annualized Dts

Residential Heat 567 655 741 848 795 850 4,456 65.07 289,951.9

Residential Non-Heat 32 34 30 35 43 41 215 24.64 5,297.6

General Service Gas 39 37 46 68 76 106 372 308.42 114,732.2

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Schedule SMG-149&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 2020 OPERATING INCOME

CONTRACT CHANGES

After After Cost ofLine Contract Contract GasNo. Customer I.D. Test Year Change Adjustment Test Year Change Adjustment Adjustment

1 CTS Customers

2 Customer A 161,247 161,247 0 $293,141 $320,506 $27,366 $0

3 Pro Forma Adjustment 0 $27,366 $0

Annual Dt Sales Annual Revenue

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Schedule SMG-159&3

LineNo. Current Proposed Proposed Annual Pro Forma 1 Section 10 of the Tariff Amount Amount Increase Transactions Revenue Adjustment23 10.1 Turn On Charge $20.00 $45.00 $25.00 25,087 $627,183.3345 Total $627,183.33

MISCELLANEOUS SERVICE CHARGES

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

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Schedule SMG-169&3

LineNo. Amount Reference

1 EET O&M Expenses Adjustment (2,708,000)$ SMG-7

2 EET Amortization Adjustment (2,047,000)$ SMG-7

3 Payroll Expense Adjustment 1,114,490$ SMG-17

4 Employee Benefits Expense Adjustment 764,287$ SMG-18

5 Allocated Service Company Costs 2,149,876$ SMG-19

6 Mark Out Expense Adjustment 174,968$ SMG-20

7 Compression Project Expense Adjustment 2,280,000$ SMG-21

8 Rate Case Expense Adjustment 253,000$ SMG-22

9 Pipeline Integrity Management 1,738,183$ SMG-23

10 2017 Rate Case Amortization Adjustment (1,853,102)$ SMG-24

11 Facility Expense Adjustment 424,249$ BJO-10

12 Pension/OPEB Amortization 1,161,982$ BJO-11

13 Pension/OPEB Expense 49,503$ BJO-11

14 ERIP Amortization 1,691,067$ BJO-12

15 BL England Amortization 1,007,961$ BJO-13

16 Inflation Adjustment 1,927,165$ SMG-25

17 Total O&M Adjustments 8,128,630$

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

SUMMARY OF O&M ADJUSTMENTS

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Schedule SMG-179&3

LineNo.1 Payroll Expenses:

2 Annualized Payroll Expenses 23,925,095$ 3 Post Test Year Payroll Increase (3%) 717,753$ 4 Total Adjusted Payroll Expenses 24,642,848$

5 Less: Test Year Payroll Expenses 23,528,358$

6 Pro Forma Payroll Adjustment 1,114,490$

7 Payroll Tax Adjustment (9%) 100,304

8 Total Pro Forma Payroll Adjustment 1,214,794$

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

PAYROLL EXPENSE

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Schedule SMG-189&3

LineNo.1 Employee Benefits Expenses:

2 Annualized Test Year Employee Benefits Expense 6,417,394$ 3 Post Test Year Employee Benefits Adjustment 215,990$ 4 Total Adjusted Employee Benefits Expense 6,633,385$

5 Less: Test Year Employee Benefits Expense 5,869,098$

6 Pro Forma Benefits Adjustment 764,287$

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

EMPLOYEE BENEFITS EXPENSE

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Schedule SMG-199&3

LineNo.1 Allocated Service Company Salaries & Benefits Expenses:

2 Annualized Test Year Expenses 5,457,153$ 3 Post Test Year Adjustment 288,569$ 4 Total Adjusted Expense 5,745,722$

5 Less: Test Year Expenses 3,595,846$

6 Pro Forma Allocated Expense Adjustment 2,149,876$

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENT TO JUNE 30, 2020 OPERATING INCOMEALLOCATED SERVICE COMPANY SALARIES & BENEFITS EXPENSE

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Schedule SMG-209&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

MARK OUT EXPENSES

LineNo.1 Mark Out Expenses:

2 Annualized Mark Out Expense 3,147,862$

3 Less: Test Year Expense 2,972,894$

4 Pro-Forma Adjustment 174,968$

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Schedule SMG-219&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

COMPRESSION PROJECT EXPENSES

LineNo.1 New Sentury Compression Project Expenses:

2 Annualized Expense 2,280,000$

3 Less: Test Year Expense -$

4 Pro-Forma Adjustment 2,280,000$

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Schedule SMG-229&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

RATE CASE EXPENSES

LineNo. Category Expense

1 Legal Expenses 800,000$

2 Consultant Expenses 392,000$

3 Newspaper Notices 11,000$

4 Court Reporting 1,000$

5 Postage 5,000$

6 Office Supplies 5,000$

7 Miscellaneous Expenses 4,000$

8 Contingency/Rebuttal Witnesses 300,000$

9 Total Rate Case Expenses 1,518,000$

10 50% 759,000$

11 Pro Forma Adjustment - Three Year Amortization 253,000$

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Schedule SMG-239&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

INTEGRITY MANAGEMENT EXPENSE

LineNo. Expense

1 Pipeline Integrity Management Deferred Balance at June 30, 2020 5,214,550$

2 Pro-Forma Adjustment - Three Year Amortization of Deferred Expense 1,738,183$

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Schedule SMG-249&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

AMORTIZATION EXPENSE

LineNo. Category Expense

1 Rate Case Expense Amortization - 2017 Rate Case (156,347)$

2 PIM Expense & Carrying Cost - 2017 Rate Case (1,696,756)$

3 Pro Forma Adjustment (1,853,102)$

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Schedule SMG-259&3

LineNo. Description Index

1 Calculation of Inflation Rate23 GDPIPD Index Value at the Midpoint of the Test Year:4 December 2019 Index-GDP 113.0 5 January 2020 Index-GDP 113.4 6 December 31, 2019 Index-GDP (Midpoint) 113.2 78 GDPIPD Index Value at the End of the Post-Test Year:9 March 2021 Index-GDP 114.7

10 April 2021 Index-GDP 114.8 11 March 31, 2021 Index-GDP (Midpoint) 114.8 1213 Projected Inflation Rate 1.37%1415 Calculation of O&M Inflation Adjustment1617 Post-Test Year Total O&M Expenses 156,022,881$ 1819 Less: Normalizing Adjustments20 (a) Annualization of Payroll 1,114,490$ 21 (b) Annualization of Benefits 764,287$ 22 (c) Annualization of Allocated Service Company Costs 2,149,876$ 23 (d) Amortization of Rate Case expenses 96,653 24 Total Normalizing Adjustments 4,125,306$ 2526 Less: Items Not Subject to Inflation27 (a) PIM Amortization 41,428 28 (b) ERIP Amortization 1,691,067 29 (c) Pension/OPEB Amortization 1,161,982 30 (d) B.L. England Amortization 1,007,961 31 (e) Pension / OBEP Expense 2,063,500 32 (f) Uncollectibles 5,186,391 33 Total Items Not Subject to Inflation 11,152,329$ 3435 Residual O&M Expenses 140,745,246$ 3637 Inflation Rate 1.37%3839 Pro Forma Adjustment to O&M Expense 1,927,165$

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

O&M INFLATION ADJUSTMENT

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Schedule SMG-269&3

LineNo.

1 Number of Percentage of Average Rate Base Current2 Actual and Number of Customers Customers Deposit for Customer Interest Monthly3 Month Projected Data Customers with Deposits with Deposits Per Customer Deposits Rate Interest45 Jun-19 Actual 393,227 33,570 8.54% $209 $7,017,656 1.87% $3,2316 Jul-19 Actual 393,071 33,047 8.41% $211 $6,967,063 1.87% $11,9767 Aug-19 Actual 392,851 32,824 8.36% $210 $6,898,841 1.87% $11,8348 Sep-19 Actual 393,104 32,644 8.30% $211 $6,879,563 1.87% $11,8609 Oct-19 Actual 393,831 32,607 8.28% $212 $6,907,744 1.87% $11,45010 Nov-19 Actual 395,460 32,731 8.28% $211 $6,920,749 1.87% $9,96711 Dec-19 Actual 397,063 32,296 8.13% $214 $6,901,582 1.87% $11,91312 Jan-20 Actual 398,263 32,338 8.12% $215 $6,939,924 2.33% $15,83013 Feb-20 Actual 399,054 32,615 8.17% $215 $7,020,892 2.33% $14,74814 Mar-20 Actual 400,031 32,549 8.14% $214 $6,973,550 2.33% $13,85815 Apr-20 Projected 400,374 32,590 8.14% $214 $6,982,431 2.33% $13,37216 May-20 Projected 400,570 32,606 8.14% $214 $6,985,849 2.33% $13,82417 Jun-20 Projected 400,616 32,610 8.14% $214 $6,986,651 2.33% $13,38018 Jul-20 Projected 399,594 32,527 8.14% $214 $6,968,828 2.33% $13,79119 Aug-20 Projected 399,562 32,524 8.14% $214 $6,968,270 2.33% $13,79020 Sep-20 Projected 399,845 32,547 8.14% $214 $6,973,205 2.33% $13,35421 Oct-20 Projected 400,462 32,598 8.14% $214 $6,983,966 2.33% $13,82122 Nov-20 Projected 401,541 32,685 8.14% $214 $7,002,783 2.33% $13,41123 Dec-20 Projected 403,104 32,813 8.14% $214 $7,030,041 2.33% $13,91224 Jan-21 Projected 403,104 32,813 8.14% $214 $7,030,041 2.33% $13,91225 Feb-21 Projected 403,104 32,813 8.14% $214 $7,030,041 2.33% $12,56526 Mar-21 Projected 403,104 32,813 8.14% $214 $7,030,041 2.33% $13,9122728 Post-Test Year Annualization of Interest2930 Mar-21 Projected 403,104 32,813 8.14% $214 $7,030,041 2.33% $163,800313233 Rate Base Test Year Adjustment Rate Base PTY Pro-Forma Adjustment Income Statement Interest Pro-Forma Adjustment3435 13 mo average 13 mo average36 Actual Ending March 31, 2020 $6,972,505 Projected ending June 30, 2020 $6,952,500 Projected Test Year Interest $154,0123738 Projected ending June 30, 2020 $6,952,500 Projected Ending December 31, 2020 $6,978,306 Post Test Year Annualized Interest $163,8003940 Test Year Adjustment ($20,005) Pro-Forma PTY Adjustment $25,806 Pro-Forma Adjustment $9,788

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO OPERATING INCOME AND RATE BASE

CUSTOMER DEPOSITS

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Schedule SMG-27.19&3

LineNo.

PUA Adjustments

1 EET Rider Adjustment (10,199,800)$

2 SHARP II/AIRP II Revenue Adjustment 752,613$

3 Interruptible Sales Revenue Adjustment (48,573)$

4 Customer Annualization 3,491,172$

5 Sales from Post Test Year Plant Additions 5,623,346$

6 Contract Changes 27,366$

7 CIP Revenue Adjustment 2,412,092$

8 Total Revenue Adjustment 2,058,217$

9 PUA Tax Rate 0.002736

10 Pro Forma Adjustment to PUA Taxes 5,630$

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

OTHER EXPENSES - REVENUE TAXES

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Schedule SMG-27.29&3

Line BPU Public AdvocateNo. Assessment Assessment Total

1 Year 2017 Intrastate Revenues 417,182,066$ 417,182,066$ 2 Estimated Assessment Rate 0.002205$ 0.000531$ 0.002736$ 34 Estimated Assessment 919,689$ 221,521$ 1,141,210$ 56 Less: Assessment included in Test Year Operating Expenses 1,069,800$ 225,300$ 1,295,100$ 78 Pro Forma Adjustment to PUA Taxes (150,111)$ (3,779)$ (153,890)$

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

OTHER EXPENSES - PUA EXPENSE ADJUSTMENT

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Schedule SMG-28.19&3

Line DescriptionTest Year Expenses

Average Daily Expenses

Revenue Lag

Expense Lag

Net (Lead)/Lag

DaysWorking Capital

Requirement

1 Operations and Maintenance Expenses2 Purchased Gas Costs 206,300,600$ 565,207 66.29 (36.51) 29.77 16,828,943$ 3 Regular Payroll 23,528,358$ 64,461 66.29 (11.92) 54.36 3,504,372 4 Variable Compensation 683,228$ 1,872 66.29 (238.97) (172.68) (323,234) 5 Pension 2,063,500$ 5,653 66.29 31.44 97.73 552,484 6 Employee Benefits 5,869,098$ 16,080 66.29 (33.53) 32.76 526,770 7 Uncollectible Expense 3,817,700$ 10,459 66.29 (653.47) (587.18) (6,141,590) 8 Outside Services Employed 27,749,999$ 76,027 66.29 (42.86) 23.43 1,780,955 9 New Jersey Clean Energy Program 13,405,600$ 36,728 66.29 (67.15) (0.86) (31,657)

10 Materials & Supplies Issues 378,692$ 1,038 66.29 0.00 66.29 68,774 11 Membership Dues 218,063$ 597 66.29 (23.46) 42.83 25,586 12 Utility Location Markout Services 3,154,300$ 8,642 66.29 (41.60) 24.69 213,368 13 Bank Service Fees 2,043,300$ 5,598 66.29 (36.04) 30.25 169,324 14 Motor Vehicle 3,669,638$ 10,054 66.29 (18.18) 48.10 483,614 15 Outside Services (Audit) 1,257,303$ 3,445 66.29 (39.99) 26.29 90,571 16 Meter Reading Services 3,201,230$ 8,770 66.29 (37.06) 29.23 256,339 17 Insurance 1,888,018$ 5,173 66.29 0.00 66.29 342,880 18 Other O&M Expenses 54,966,227$ 150,592 66.29 (51.14) 15.14 2,280,540 19 Total O&M Expenses 354,194,852$ 20,628,040$

20 Income Taxes21 Excess Deferred Tax Amortization -$ - 66.29 0.00 66.29 - 22 Federal Income Taxes 21,820,072 59,781 66.29 (37.00) 29.29 1,750,812 23 State Income Tax 10,276,329 28,154 66.29 47.25 113.54 3,196,560 24 Total Federal Income Taxes 32,096,402$ 4,947,372$

25 Taxes Other Than Income Taxes26 PUA and Ratepayer Advocate 1,295,100$ 3,548 66.29 (394.50) (328.21) (1,164,571)$ 27 Other Taxes Other Than Income Taxes 3,673,700 10,065 66.29 (18.36) 47.92 482,345 28 Taxes Other Than Income Taxes 4,968,800$ (682,226)$

29 Depreciation and Amortization Expense 66,649,400$ 182,601$ 66.29 0.00 66.29 12,104,094$

30 Interest Expense31 Interest on Long-Term Debt 32,614,700$ 89,355 66.29 (59.51) 6.77 605,244$ 32 Interest on Short-Term Debt - - 66.29 (6.91) 59.38 -$ 33 Interest on Customer Deposits 154,012 422 66.29 (246.39) (180.10) (75,995)$ 34 Total Interest Expense 32,768,712$ 529,249$

38 Return 87,146,234$ 238,757 66.29 0.00 66.29 15,826,492$

39 Other Working Capital Requirements / (Sources)40 Employee Deductions (1,000,161)$ 41 Cash Balance 290,164 42 Working Funds 301,750$ 43 General Prepayments 4,706,834$ 44 Prepaid Energy Sales and Use Tax 10,536,917$ 45 USF/Lifeline Reserve 755,201$ 46 Prepaid Pension 35,641,494$ 47 Prepaid Postretirement Healthcare 8,215,471$ 48 Accrued Invoiced Related to Plant (31,831,110)$ 49 Accrued Payroll Related to Plant (1,107,153)$ 50 Vacation Accrual Reserve (1,127,898)$ 51 Uninsured Risk Reserve (718,226)$ 52 Marketer Payment Reserve (1,268,576)$ 53 Total Other Working Capital 23,394,706$ 545556 Total 577,824,400$ 76,747,726$

SOUTH JERSEY GAS COMPANYLead-Lag Study

Working Capital RequirementTest Year

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Schedule SMG-28.29&3

Line DescriptionAdjusted Test Year Expenses

Average Daily Expenses

Revenue Lag

Expense Lag

Net (Lead)/Lag

DaysWorking Capital

Requirement

1 Operations and Maintenance Expenses2 Purchased Gas Costs 207,389,532$ 568,190 66.29 (36.51) 29.77 16,917,772$ 3 Regular Payroll 24,642,848 67,515 66.29 (11.92) 54.36 3,670,367 4 Variable Compensation 683,228 1,872 66.29 (238.97) (172.68) (323,234) 5 Pension 3,274,985 8,973 66.29 31.44 97.73 876,849 6 Employee Benefits 6,633,385 18,174 66.29 (33.53) 32.76 595,367 7 Uncollectible Expense 5,186,391 14,209 66.29 (653.47) (587.18) (8,343,424) 8 Outside Services Employed 29,899,875 81,917 66.29 (42.86) 23.43 1,918,931 9 New Jersey Clean Energy Program 13,405,600 36,728 66.29 (67.15) (0.86) (31,657)

10 Materials & Supplies Issues 378,692 1,038 66.29 0.00 66.29 68,774 11 Membership Dues 218,063 597 66.29 (23.46) 42.83 25,586 12 Utility Location Markout Services 3,329,268 9,121 66.29 (41.60) 24.69 225,204 13 Bank Service Fees 2,043,300 5,598 66.29 (36.04) 30.25 169,324 14 Motor Vehicle 3,669,638 10,054 66.29 (18.18) 48.10 483,614 15 Outside Services (Audit) 1,257,303 3,445 66.29 (39.99) 26.29 90,571 16 Meter Reading Services 3,201,230 8,770 66.29 (37.06) 29.23 256,339 17 Insurance 1,888,018 5,173 66.29 0.00 66.29 342,880 18 Other O&M Expenses 57,679,750 158,027 66.29 (51.14) 15.14 2,393,124 19 Total O&M Expenses 364,781,105$ 19,336,387$

20 Income Taxes21 Excess Deferred Tax Amortization (2,223,581)$ (6,092) 66.29 0.00 66.29 (403,821) 22 Federal Income Taxes 32,600,010$ 89,315 66.29 (37.00) 29.29 2,615,778 23 State Income Tax 15,353,223 42,064 66.29 47.25 113.54 4,775,781 24 Total Federal Income Taxes 45,729,652$ 6,987,738$

28 Taxes Other Than Income Taxes29 PUA and Ratepayer Advocate $1,522,055 4,170 66.29 (394.50) (328.21) (1,368,653) 30 Other Taxes Other Than Income Taxes 3,625,744 9,934 66.29 (18.36) 47.92 476,049 31 Taxes Other Than Income Taxes 5,147,799$ (892,604)$

32 Depreciation and Amortization Expense 80,346,553$ 220,128 66.29 0.00 66.29 14,591,612$

33 Interest Expense34 Interest on Long-Term Debt 38,702,313$ 106,034 66.29 (59.51) 6.77 718,214$ 35 Interest on Short-Term Debt - - 66.29 (6.91) 59.38 - 36 Interest on Customer Deposits 163,800 449 66.29 (246.39) (180.10) (80,825) 37 Total Interest Expense 38,866,113$ 637,389$

38 Return 124,861,713$ 342,087 66.29 0.00 66.29 22,675,941$

39 Other Working Capital Requirements / (Sources)40 Employee Deductions (1,000,161)$ 41 Cash Balance 290,164$ 42 Working Funds 301,750$ 43 General Prepayments 4,706,834$ 44 Prepaid Energy Sales and Use Tax 10,536,917$ 45 USF/Lifeline Reserve 755,201$ 46 Prepaid Pension 35,641,494$ 47 Prepaid Postretirement Healthcare 8,215,471$ 48 Accrued Invoiced Related to Plant (31,831,110)$ 49 Accrued Payroll Related to Plant (1,107,153)$ 50 Vacation Accrual Reserve (1,127,898)$ 51 Uninsured Risk Reserve (718,226)$ 52 Marketer Payment Reserve (1,268,576)$ 53 Total Other Working Capital 23,394,706$

54 Total 659,732,935$ 86,731,171$

SOUTH JERSEY GAS COMPANYLead-Lag Study

Working Capital RequirementPost Test Year

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Schedule SMG-299&3

Line

1 Natural Gas2 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual 13 Month3 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 AVERAGE4 Actual - As of March 2020 $1,475,458 $3,928,955 $7,702,917 $10,332,392 $12,821,096 $15,325,218 $17,307,911 $18,234,715 15,515,382 11,798,273 7,454,319 4,526,161 1,361,177 9,829,536 56 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Forecast Forecast Forecast 13 Month7 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 AVERAGE8 Forecast - TY End June 2020 10,332,392 12,821,096 15,325,218 17,307,911 18,234,715 15,515,382 11,798,273 7,454,319 4,526,161 1,361,177 2,781,228 4,494,106 6,309,312 9,866,253 9

10 Actual Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 13 Month11 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 AVERAGE12 Forecast - PTY End Dec 2020 11,798,273 7,454,319 4,526,161 1,361,177 2,781,228 4,494,106 6,309,312 8,395,677 10,470,071 12,294,129 13,443,883 12,509,267 10,539,989 8,182,892 131415 Liquefied Natural gas Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual 13 Month16 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 AVERAGE17 Actual - As of March 2020 $2,029,022 $2,847,815 $2,855,842 $2,937,442 $2,976,135 $2,940,584 $2,924,383 $3,316,052 $3,296,606 $3,040,412 3,035,123 3,013,946 3,001,244 2,939,585 1819 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Forecast Forecast Forecast 13 Month20 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 AVERAGE21 Forecast - TY End June 2020 2,937,442 2,976,135 2,940,584 2,924,383 3,316,052 3,296,606 3,040,412 3,035,123 3,013,946 3,001,244 3,149,195 3,349,457 3,570,009 3,119,276 2223 Actual Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 13 Month24 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 AVERAGE25 Forecast - PTY End Dec 2020 3,040,412 3,035,123 3,013,946 3,001,244 3,149,195 3,349,457 3,570,009 3,778,918 3,987,286 4,221,096 4,340,217 4,312,643 3,920,744 3,593,868 2627 Materials and Supplies*28 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual 13 Month29 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 AVERAGE30 Actual - As of March 2020 619,103 619,103 618,809 618,809 631,843 631,844 631,844 631,844 631,844 631,844 629,925 629,925 629,925 627,435 3132 *No Forecast333435 Total Actual Inventories as of: Mar-20 13,396,557 3637 Total Projected Inventories as of: Jun-20 - Test Year Ending 13,612,964 3839 Total Projected Inventories as of: Dec-20 - Post Test Year Ending 12,404,196

SOUTH JERSEY GAS COMPANYCASH WORKING CAPITAL

INVENTORIES AND MATERIALS & SUPPLIES

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9 & 3 UPDATE

Schedules of

B.W. Schomber

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Schedule BWS-19&3

LineNo.

Reference12 Actual UPIS as of 3/31/20 $3,010,903,288 SMG-234 Projected Test Year Plant Additions (4/1/20 - 6/30/20) 98,407,404$ BWS-25 Projected Test Year Plant Retirements (4/1/20 -6/30/20) (3,486,330)$ BWS-26 Total Projected Test Year Net Plant Additions (4/1/20-6/30/20) 94,921,075$ 78 Projected Test Year Ending UPIS at 6/30/20 $3,105,824,3639

10 Projected Post Test Year Plant Additions (7/1/20 - 12/31/20) 72,305,899$ BWS-311 Projected Post Test Year Plant Retirements (7/1/20 - 12/31/20) (6,972,659)$ BWS-312 Projected Post Test Year Major Capital Projects 110,025,478$ BWS-413 Total Projected Post Test Year Net Plant Additions (7/1/20-12/31/20) 175,358,718$ 1415 Projected Post Test Year Ending UPIS at 12/31/20 $3,281,183,080

SOUTH JERSEY GAS COMPANYSTATEMENT OF RATE BASE

UTILITY PLANT IN SERVICE (UPIS)

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Schedule BWS-29&3

July August September October November December January February March April May June 2019-202Actual Actual Actual Actual Actual Actual Actual Actual Actual Projected Projected Projected Test Year2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 Total

New Business1.0 Mains 1,656,732 1,918,260 1,624,729 2,106,621 1,252,980 1,538,894 1,499,843 1,102,139 991,409 1,703,200 1,277,400 1,141,200 17,813,408 1.1 Services 1,815,218 1,811,642 2,409,461 2,604,810 2,395,199 3,184,307 2,385,095 2,117,028 2,091,959 2,304,700 1,773,000 1,568,300 26,460,719 1.2 Meters 405,570 540,221 863,745 685,155 796,586 795,043 212,126 616,308 794,357 1,051,400 1,085,800 1,084,200 8,930,510 1.3 Regulators 224,115 295,911 255,012 427,243 471,362 436,350 249,051 434,632 250,627 166,600 166,200 256,500 3,633,604

Total New Business 4,101,634 4,566,034 5,152,947 5,823,829 4,916,128 5,954,595 4,346,115 4,270,106 4,128,353 5,225,900 4,302,400 4,050,200 56,838,242

2.0 Improvement Mains 26,997 3,158 31,370 65,795 114,800 39,272 44,952 76,779 185,744 74,800 69,400 69,400 802,467

Replacements3.0 Replacement Mains 909,687 1,117,275 1,357,792 1,052,852 1,174,232 795,678 2,346,067 229,616 1,211,847 1,589,000 2,640,300 410,600 14,834,946 3.1 Replacement Services 942,104 2,173,407 905,718 953,858 1,310,304 1,318,710 1,101,638 1,651,029 1,519,020 994,400 506,400 2,199,200 15,575,787 3.2 Leak Clamping 388,328 304,417 366,319 553,338 424,541 371,857 382,657 388,138 405,274 445,300 368,200 325,500 4,723,870 3.3 Replacement Meters 22,825 9,805 35,454 21,192 27,432 28,302 18,892 25,670 30,025 17,800 17,800 17,800 272,998 3.4 Replacement Regulators 539,829 717,297 605,135 656,964 586,798 347,733 757,054 631,223 449,776 867,100 867,100 867,100 7,893,109

Total Replacements 2,802,773 4,322,201 3,270,418 3,238,204 3,523,306 2,862,280 4,606,309 2,925,676 3,615,942 3,913,600 4,399,800 3,820,200 43,300,710

4.0 Land & Buildings - - - - - - - - - - - - -

5.0 Automotive Equipment 25,366 42,535 6,778 6,778 27,824 1,584 1,584 3,184 1,584 1,014,700 1,141,600 642,600 2,916,117

6.0 Production Equipment (103,173) 15,095 61,336 348,985 102,043 105,412 (4,703) 10,234 49,095 52,000 200,100 95,300 931,724

7.0 Transmission Equipment 100,587 89,113 77,611 94,588 128,873 270,636 45,859 51,758 541,292 144,500 86,500 199,800 1,831,117

8.0 Distribution Equipment 56,013 575,089 934,703 551,578 507,838 684,506 284,359 905,661 775,533 84,700 384,700 59,900 5,804,580

9.0 Office Furniture & Equipment 5,734 - 2,992 17,830 (10,224) 4,913 7,334 17 - - 200 - 28,795

10.0 Building Improvements 71,336 230,886 61,257 86,793 127,865 11,552 173,706 116,634 91,941 108,800 250,400 376,500 1,707,672

11.0 Cathodic Protection 228,739 270,989 182,929 298,574 193,681 198,638 73,531 94,529 162,074 327,700 338,300 349,100 2,718,784

12.0 Communications Equipment - - - - - - - - - - - - -

13.0 Information Technology 282,215 93,120 350,884 151,892 192,756 150,893 188,028 89,625 363,312 57,500 108,700 180,100 2,209,026

14.0 Infrastructure Investment SHARP II (234,131) 1,369,633 423,500 6,375,932 4,045,250 4,297,321 3,444,972 3,680,400 3,166,773 1,555,916 1,917,204 1,043 30,043,813 AIRP II 7,809,036 7,493,861 6,652,923 6,302,036 5,156,266 6,468,955 4,923,708 4,266,375 3,040,118 973,200 457,800 3,576,300 57,120,578 Total Infrastructure Investment 7,574,904 8,863,494 7,076,423 12,677,967 9,201,516 10,766,276 8,368,680 7,946,775 6,206,891 2,529,116 2,375,004 3,577,343 87,164,391

TOTAL SJG Capex 15,173,127 19,071,715 17,209,647 23,362,814 19,026,407 21,050,557 18,135,755 16,490,979 16,121,761 13,533,316 13,657,104 13,420,443 206,253,625

Transfer from CWIP to UPIS - - - - - - - - - 3,649,519 19,324,594 34,822,428 57,796,541

Total 15,173,127 19,071,715 17,209,647 23,362,814 19,026,407 21,050,557 18,135,755 16,490,979 16,121,761 17,182,835 32,981,698 48,242,871 264,050,166

Total Retirements 2,914,274 3,123,860 1,764,925 3,460,220 1,548,701 11,946,428 2,361,865 1,908,088 2,933,825 1,162,110 1,162,110 1,162,110 35,448,516

Total 12,258,853 15,947,855 15,444,721 19,902,594 17,477,707 9,104,129 15,773,890 14,582,891 13,187,936 16,020,726 31,819,588 47,080,761 228,601,650

SOUTH JERSEY GAS COMPANYADJUSTMENT TO JUNE 30, 2020 RATE BASE

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Schedule BWS-39&3

July August September October November DecemberTotal Post Test

YearForecast Forecast Forecast Forecast Forecast Forecast Forecast

2020 2020 2020 2020 2020 2020 2020New Business

1.0 Mains 1,082,500 1,086,600 1,266,200 1,219,100 1,184,300 1,006,800 6,845,500 1.1 Services 1,488,300 1,491,700 1,727,100 1,653,700 1,602,800 1,372,400 9,336,000 1.2 Meters 1,192,300 1,172,400 1,148,000 1,012,000 884,400 870,500 6,279,600 1.3 Regulators 240,700 240,700 240,700 240,700 240,700 269,000 1,472,500

Total New Business 4,003,800 3,991,400 4,382,000 4,125,500 3,912,200 3,518,700 23,933,600

2.0 Improvement Mains 72,800 61,900 61,900 61,900 61,900 61,900 382,300

Replacements3.0 Replacement Mains 1,833,400 1,841,800 1,868,800 2,274,400 2,073,800 1,300,300 11,192,500 3.1 Replacement Services 2,887,300 2,943,800 2,910,700 2,829,200 2,835,100 844,500 15,250,600 3.2 Leak Clamping 376,200 494,900 502,600 522,000 570,200 581,900 3,047,800 3.3 Replacement Meters 15,300 15,300 15,300 15,300 15,300 18,100 94,600 3.4 Replacement Regulators 993,700 993,700 993,700 993,700 993,700 993,700 5,962,200

Total Replacements 6,105,900 6,289,500 6,291,100 6,634,600 6,488,100 3,738,500 35,547,700

4.0 Land & Buildings - 50,300 50,000 - - - 100,300.0

5.0 Automotive Equipment 413,600 702,100 1,566,100 1,434,900 676,100 47,800 4,840,600

6.0 Production Equipment 19,800 208,700 12,300 700 700 500 242,700

7.0 Transmission Equipment 181,400 162,700 163,200 88,600 88,900 89,400 774,200

8.0 Distribution Equipment 65,200 65,200 65,200 65,300 65,300 61,400 387,600

9.0 Office Furniture & Equipment 25,100 76,900 25,200 - 26,900 200 154,300

10.0 Building Improvements 391,200 403,900 246,100 309,100 198,100 38,900 1,587,300

11.0 Cathodic Protection 386,400 386,500 386,500 332,800 301,800 289,700 2,083,700

12.0 Communications Equipment - - - - - - -

13.0 Information Technology 123,400 85,700 30,300 30,400 29,900 26,800 326,500

14.0 Infrastructure Investment SHARP II - - - - - - - AIRP II - - - - - - - Total Infrastructure Investment - - - - - - -

TOTAL SJG Capex 11,788,600 12,484,800 13,279,900 13,083,800 11,849,900 7,873,800 70,360,800

Transfer from CWIP to UPIS 56,133 67,581 76,813 65,814 - 1,678,758 1,945,099

Total 11,844,733 12,552,381 13,356,713 13,149,614 11,849,900 9,552,558 72,305,899

Total Retirements 1,162,110 1,162,110 1,162,110 1,162,110 1,162,110 1,162,110 6,972,659

Total 10,682,623 11,390,271 12,194,603 11,987,504 10,687,790 8,390,449 65,333,239

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENT TO JUNE 30, 2020 RATE BASE

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Schedule BWS-49&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO DECEMBER 31, 2020

MAJOR CAPITAL PROJECTS

Line Actuals as of Test Year Post-Test Year Total ProjectedNo. Project Name Type of Project Mar-20 Projection Projection Projection In Service Date

1 New Sentury Compression Project (A3482) Transmission Equipment 28,408,083$ 11,956,000$ 24,439,300$ 64,803,383$ December 20202 24 New Sentury Traffic Study HDD Replacement Mains 11,766$ 119,100$ 1,365,800$ 1,496,666$ December 20203 8 Ocean Heights Offset Improvement Mains 4,077$ 325,700$ 550,800$ 880,577$ October 20204 Farm Taps 2020 (A4245) Transmission Equipment 481,230$ 322,500$ 75,300$ 879,030$ December 20205 Stokes Road Station Replacement Transmission Equipment 35,692$ 32,100$ 451,900$ 519,692$ October 20206 Timothy Lane Reg Station Replacement Transmission Equipment 6,513$ 329,200$ 51,100$ 386,813$ July 20207 Above Grade Station Asbuilt Program Transmission Equipment 14,159$ 83,000$ 168,300$ 265,459$ December 20208 Gate Station Odorization Transmission Equipment -$ 25,700$ 301,200$ 326,900$ November 20209 Renovation of Folsom Headquarters Facility - compu Building Improvements 8,605,106$ 2,670,700$ 7,824,194$ 19,100,000$ September 202010 Maximo & CC&B Upgrade (A3881) Information Technology 4,489,699$ 2,483,100$ 5,729,900$ 12,702,699$ August 202011 SJG Contact Center Modernization (3286) Information Technology 1,875,554$ 119,000$ 1,492,200$ 3,486,754$ December 202012 ServiceNow Enhancement (ITSM, ITBM) Information Technology -$ 58,000$ 281,700$ 339,700$ December 202013 SCADA Intrusion Prevention System (IPS) Upgrade Information Technology -$ 228,300$ 425,200$ 653,500$ December 202014 Role-Based Access Control (3284) Information Technology 448,678$ 41,900$ 36,800$ 527,378$ August 202015 Safety Management Solution (A3867) Information Technology 179,863$ 74,000$ 216,700$ 470,563$ August 202016 Cyber Risk Remediation (A3880) Information Technology 79,392$ 68,400$ 130,100$ 277,892$ October 202017 NextGen Portal Information Technology 65,239$ 600$ 178,800$ 244,639$ December 202018 Windows/SQL 2008 Upgrades (A4215) Information Technology 129,028$ 30,300$ 129,100$ 288,428$ August 202019 16 & 8 Cape May Lateral Tie In Replacement Mains 2,137$ 371,000$ 147,500$ 520,637$ July 202020 MV Customer Payment Upgrades (3262) Building Improvements 8,543$ -$ 200,600$ 209,143$ September 202021 FO - Roof Replacement Building Improvements 235,703$ 304,200$ 800,000$ 1,339,903$ October 202022 Galloway Station Inlet Relocation (A3886) Transmission Equipment 6,521$ 108,100$ 191,100$ 305,721$ September 20202324 Total Post Test Year Major Capital Projects 45,086,984$ 19,750,900$ 45,187,594$ 110,025,478$

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9 & 3 UPDATE

Schedules of

B.J. O’Brien

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Schedule BJO-59&3

Line Depreciation No. Utility Plant Expense Schedule

in Service (Proposed Rates) Reference

1 Depreciation Expense:2 3 Utility Plant In Service as of June 30, 2020 3,105,824,363$ 70,725,057$ 45 Test Year Depreciation Expense 66,649,400$ SMG-367 Pro Forma Depreciation Expense Annualization Adjustment 4,075,657$ 89 Post Test Year Depreciation Expense Annualization Adjustment 175,358,718$ 6,735,183$

1011 Adjustment due to Increase in Proposed Annual Net Negative Salvage Allowance 2,612,316$ BJO-61213 Adjustment due to Decrease in Non-Legal Asset Retirement Obligation (ARO) Credit 273,997$ BJO-61415 Total Pro Forma Adjustment to Depreciation Expense (Income Statement) 3,281,183,080$ 13,697,153$ 161718 Accumulated Depreciation:1920 Accumulated Depreciation as of June 2020 (569,206,398)$ SMG-22122 Post Test Year Depreciation on UPIS as of June 30, 2020 (Jul 20 -Dec 20) (35,362,528)$ Line 3 / 22324 Post Test Year Depreciation on PTY Plant (Jul 20 -Dec 20) (3,367,592)$ Line 7 / 22526 Post Test Year Retirements (Jul 20 -Dec 20) 6,972,659$ BWS-12728 Post Test Year Net Salvage (Jul 20 -Dec 20) 4,201,169$ BJO-62930 Post Test Year Net Salvage Allowance (Jul 20 -Dec 20) (3,636,035)$ BJO-63132 Accumulated Depreciation as of Dec 31, 2020 (Rate Base) (600,398,726)$

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

DEPRECIATION EXPENSE AND ACCUMULATED DEPRECIATION

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Schedule BJO- 69&3

(a) (b) (c) (d) (e)Net Net

Line Start COR Salvage Salvage End

No. Reserve Amort. Allowance Incurred Reserve

1 Jul‐17 24,657,876$                          (88,344) 199,181 (613,270) 24,155,442

2 Aug‐17 24,155,442$                          (88,344) 199,181 (128,516) 24,137,762

3 Sep‐17 24,137,762$                          (88,344) 177,936 (758,741) 23,468,612$                  

4 Oct‐17 23,468,612$                          (88,344) 199,181 (453,737) 23,125,712$                  

5 Nov‐17 23,125,712$                          (60,800) 388,313 (208,184) 23,245,040$                  

6 Dec‐17 23,245,040$                          (60,800)                      388,313 (277,070) 23,295,482$                  

7 2018 23,295,482$                          (729,605) 4,659,755 (6,420,311) 20,805,321$                  

8 2019 20,805,321$                          (729,605) 4,659,755 (8,402,337) 16,333,134$                  

9 Jan to June 2020 16,333,134$                          (364,803) 2,329,878 (4,554,044) 13,744,165$                  

(8,271,295)                      

10 Projected Balance Available to be Returned to Customer as of June 30, 2020 13,744,165$                  

11 Number of Years Remaining from the Original 40-Year Amortization Period 30  1/6

12 Projected Annual Amortization of Regulatory Liability 455,608$                        

13 Current Annual Amortization of Regulatory Liability included in Rates (BPU Docket No. GR17010071) 729,605$                        

14 Proposed Decrease in Annual Amortization of Regulatory Liability (273,997)$

15 Proposed Provision for Annual Net Negative Salvage (3-year average) 7,272,071$                     

16 Current Provision for Annual Net Negative Salvage 4,659,755$                     

17 Proposed Change in Annual Net Negative Salvage 2,612,316$

New Shortfall (net col's c & d)

SOUTH JERSEY GAS COMPANYNON-LEGAL ASSET RETIREMENT OBLIGATION (ARO) AMORTIZATION

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Schedule BJO-79&3

Line POST TEST YEAR ADDED TAX DFIT INNo. ADDITIONS DEPRECIATION RATE BASE

1 Projected DFIT Rate Base Balance 6/30/20 (282,229,768) (1)

23 Normalization on 6/30/20 Plant (PTY 7/20-12/20):45 Book Depreciation 33,621,07767 Tax Depreciation-Federal (58,234,207)89 Federal Tax Depreciation Over Book (24,613,129)

1011 Normalization on PTY Additions (PTY 7/20-12/20):1213 Book Depreciation 3,367,5921415 Tax Depreciation-Federal (3,287,976)1617 Federal Tax Depreciation Over Book 79,6161819 Total Added Tax Depreciation (24,533,514)2021 Deferred FIT (@ effective FIT rate of 21%) (5,152,038)2223 Federal benefit of state taxes - 21% 1,802,0812425 NOL Carryforward (27,471,289) (2)

2627 Adjusted DFIT Rate Base Balance 12/31/20 (313,051,014)

(1) Deferred Balance adjusted to reflect adjusted NOL Carryforward Balance(2) Reflect update to projected utilitzation of NOL Carryforward

SOUTH JERSEY GAS COMPANYCALCULATION OF ADJUSTED TEST YEAR

DEFERRED FEDERAL INCOME TAX (DFIT) INCLUDED IN RATE BASE

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Schedule BJO-89&3

Line POST TEST YEAR ADDED TAX DFIT INNo. ADDITIONS DEPRECIATION RATE BASE

1 Projected DFIT Rate Base Balance 6/30/20 (72,689,062) (1)

23 Normalization on 6/30/20 Plant (PTY 7/20-12/20):45 Book Depreciation 33,621,07767 Tax Depreciation-Federal (58,234,207)89 Federal Tax Depreciation Over Book (24,613,129)

1011 Normalization on PTY Additions (PTY 7/20-12/20):1213 Book Depreciation 3,367,5921415 Tax Depreciation-Federal (3,287,976)1617 Federal Tax Depreciation Over Book 79,6161819 Total Added Tax Depreciation (24,533,514)2021 Pro Forma Adjustment - Deferred NJ CBT @ 9.00% (2,208,016)2223 NOL Carryforward (6,373,321) (2)

2425 Adjusted DCBT Rate Base Balance 12/31/20 (81,270,400)

(1) Deferred Balance adjusted to reflect State NOL Carryforward Balance(2) New Line item to reflect projected utilitzation of State NOL Carryforward

SOUTH JERSEY GAS COMPANYCALCULATION OF ADJUSTED TEST YEAR

DEFERRED NJ CORPORATE BUSINESS TAX (CBT) INCLUDED IN RATE BASE

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Schedule BJO-99&3

Line No.

1 Adjusted Rate Base 2,215,934,659$ 23 Total Weighted Cost of Long Term Debt 1.75%45 Annualized Interest Expense 38,702,313$ 67 Less: Test Year Interest Expense (37,675,900)$ 89 Net Interest Expense 1,026,413$

1011 Income Tax Rate 28.11%1213 (Increase)/Decrease to test year income taxes 288,525$ 1415 Total (Increase)/Decrease to test year income taxes 288,525$

PRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOMEINCOME TAXES - INTEREST SYNCHRONIZATION

SOUTH JERSEY GAS COMPANY

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Schedule BJO-109&3

LineNo.1 Rental Income:

2 Annualized Test Year Rental Income 634,148$ 3 Less: Test Year Rental Income -$

4 Pro Forma Rental Income Adjustment 634,148$

5 Facility Expense:

6 Annualized Test Year Facility Expense 640,000$ 7 Less: Test Year Facility Expense 215,751$

8 Pro Forma Facility Expense Adjustment 424,249$

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

REVENUE AND O&M EXPENSE - FOLSOM FACILITY

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Schedule BJO-119&3

Line No. Pension SERP FAS 1061 Acct 182387 Acct 182388 Acct 182389 Total2 Total Unamortized Deferred Balance as of March 2020 1,558,037$ 3,248,584$ (1,333,049)$ 3,473,572$ 34 Projected Monthly Deferred Expenses (1)

5 Apr-20 16,213$ 119,865$ (131,953)$ 4,125$ 6 May-20 16,213$ 119,865$ (131,953)$ 4,125$ 7 Jun-20 16,213$ 119,865$ (131,953)$ 4,125$ 8 48,639$ 359,595$ (395,859)$ 12,376$ 9

10 Projected Unamortized Deferred Balance as of June 2020 1,606,676$ 3,608,179$ (1,728,907)$ 3,485,947$ 1112 (1) Projected Monthly expenses based on 2020 estimates from Towers Watson.1314 Total Projected Deferred Balance at Test Year End June 30, 2020 3,485,947$ 15 Amortization Period (Years) 3 16 Pro Forma Annual Amortization Adjustment 1,161,982$ 171819 Projected Monthly Pension Expense 4,125$ 20 Months 12 21 Pro Forma Annual Pension Expense Adjustment 49,503$

PRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOMESOUTH JERSEY GAS COMPANY

PENSION EXPENSE

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Schedule BJO-129&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

EARLY RETIREMENT INCENTIVE PLAN

LineNo. Expense

1 Early Retirement Incentive Plan Deferred Balance at June 30, 2020 5,073,202$

2 Pro-Forma Adjustment - Three Year Amortization of Deferred Expense 1,691,067$

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Schedule BJO-139&3

SOUTH JERSEY GAS COMPANYPRO FORMA ADJUSTMENTS TO JUNE 30, 2020 OPERATING INCOME

B.L. ENGLAND COSTS

LineNo. Expense

1 BL England Project Costs at March 31, 2020 10,079,607$

2 Pro-Forma Adjustment - Ten Year Amortization of Deferred Expense 1,007,961$

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9 & 3 UPDATE

Schedules of

R.B. Hevert

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Schedule RBH‐12

Page 1 of 1

(See Note 1)

Capital

Percent of 

Capital

Common Equity $1,127,271,678 54.18%

Long‐Term Debt (net of current maturities $953,446,000 45.82%

Total Capitalization $2,080,717,678 100.00%

Maturity Principal

Unamortized 

Issuance Costs Net Principal Coupon Rate

Annual 

Interest

Annual Debt 

Issuance Costs

Total Annual 

Costs

All‐In Cost of 

Debt

09/20/24 $40,000,000 $164,684 $39,835,316 3.000% $1,200,000 $35,780 $1,235,780 3.102%

11/30/24 $28,000,000 $98,909 $27,901,091 3.030% $848,400 $20,057 $868,457 3.113%

12/30/25 $4,546,000 $40,338 $4,505,662 3.630% $165,020 $6,816 $171,836 3.814%

03/01/26 $15,000,000 $165,343 $14,834,657 4.840% $726,000 $26,469 $752,469 5.072%

06/30/26 $45,000,000 $192,612 $44,807,388 4.930% $2,218,500 $29,664 $2,248,164 5.017%

12/30/27 $45,000,000 $213,423 $44,786,577 4.030% $1,813,500 $27,048 $1,840,548 4.110%

11/21/30 $34,000,000 $245,991 $33,754,009 4.010% $1,363,400 $22,847 $1,386,247 4.107%

01/30/30 $30,000,000 $153,186 $29,846,814 4.230% $1,269,000 $15,403 $1,284,403 4.303%

04/01/32 $35,000,000 $449,548 $34,550,452 3.740% $1,309,000 $37,207 $1,346,207 3.896%

07/15/33 $32,000,000 $854,838 $31,145,162 5.550% $1,776,000 $63,807 $1,839,807 5.907%

08/01/34 $10,000,000 $163,334 $9,836,666 6.213% $621,300 $11,356 $632,656 6.432%

09/14/35 $10,000,000 $375,850 $9,624,150 5.450% $545,000 $24,195 $569,195 5.914%

04/01/36 $24,900,000 $954,961 $23,945,039 3.430% $854,070 $57,997 $912,067 3.809%

01/25/47 $200,000,000 $1,648,532 $198,351,468 3.000% $6,000,000 $61,681 $6,061,681 3.056%

04/16/30 $150,000,000 $896,145 $149,103,855 3.280% $4,920,000 $89,565 $5,009,565 3.360%

04/16/50 $250,000,000 $1,493,575 $248,506,425 3.930% $9,825,000 $49,754 $9,874,754 3.974%

$953,446,000 $8,111,270 $945,334,730 3.719% $35,454,190 $579,646 $36,033,836 3.812%

Weight Cost Rate

Weighted 

Average Cost 

of Capital

Common Equity 54.18% 10.400% 5.634%

Long‐Term Debt 45.82% 3.812% 1.747%

Total Capitalization 100.00% 7.381%

Hevert Table 8A: Updated Capital Structure

Hevert Table 9A: Upated Embedded Cost of Debt

Hevert Table 10A: Updated Weighted Average Cost of Capital

Note 1:  The information on this schedule replaces the information provided in Table 8, Table 9, and Table 10 provided on pages 52 and 54 of the Direct Testimony of 

Company Witness Hevert.